Nutraceuticals

While there are lots of nutraceutical businesses doing well, acquiring banks still consider the industry to be a high risk one. The reason for this classification comes fromthe recurring and continuity billing model, lack of regulatory standards on their products, and high risk of chargebacks. Many of the nutraceuticals businesses operate based on a recurring billing model. This means that their buyers/subscribers will be charged monthly or recurrently until they contact the merchant to cancel the subscription. Most times,these bills usually start with a low introductory fee, but as time goes on, many nutraceutical businesses start billing customers higher rates. This comes as a surprise to the customers and causes them to call their bank to dispute the charges, instead of contacting the merchant first.

What’s The Solution For Nutraceutical Chargebacks?

There’s no sole solution for fixing chargebacks. Every chargeback case usually has itsonly reason,which might not be as a result of any change carried out by the merchant. But below are some steps that the merchants can take to help reduce chargeback cases.

One of the easiest ways to reduce chargeback rates is by refunding customers that are not happy with a product. While many merchants try to settle any problem with a product, sometimes it is better to compensate and avoid more issues simply.

At times, customers read their monthly bank statementsand can’t recognize a transaction. So, having a clear and concise company name and customer representative number will show customers to reach out directly to you. It’s when customers can’t reach the merchants that they resolve to call their banks, which will start a chain of events that eventually results in an ensuing chargeback.

The last way nutraceuticals merchants can reduce chargebacks is by having a third party system that specializes in chargebacks. These companies make use of software services that work together with payment card systems to alert and respond to potential chargebacks.